Islamic finance could play a key role amidst global fears

APP)Key investors and industry figures at their meeting at the second Islamic Finance and Trade Conference considered the best ways forward for Islamic and ethnical finance in the face of the global recession.

At the two-day conference which ended here on Wednesday, British financiers discussed the opportunities Islamic and ethical finance presents in coping with the global financial crisis. Despite the global economic crisis leading financial experts believed that finance governed by Sharia law provides the basis for new income streams that are more stable and offer long-term prospects.

The speakers noted that the City of London has always been at the forefront of many of the developments in Shariah-compliant financial products.

With a global recession imminent, exploring ways of building and strengthening these partnerships and applying the underlying principals of Islamic finance could help contribute to a more stable economy.

A sentiment supported and encouraged by the UK Treasury who hope to encourage further foreign investment as well as creating more British-Islamic institutions in the UK.

In his keynote address, the British Financial Secretary Stephen Timms, said: “There are five dedicated Islamic banks in the UK, one Islamic insurance provider, we see these as great examples, like the MCB (Muslim Council of Britain) itself of something we would like to see a lot more of in the UK, distinctive institutions which are both Muslim and British.

Both at the same time without a hint of a conflict because in that way we will see more and more Muslims contributing to British life and to our aims of a strong economy and society for the benefit of every single person in the UK.”

He went on to explain how the new generation of young British Muslims will be key players in Britainbs future success.

“We want this to be a collaborative effort for everybody involved, with the skills, expertise, and dedication that characterise this industry. I am very optimistic that working together we can ensure that Islamic Finance and Trade are very major elements in London’s success in the decades ahead.”

Timms further said the UK treasury has been working to create the right conditions for Islamic finance to thrive and to benefit both institutions and Muslims living in the UK. He observed that in the current economic climate there is much that can be learnt from finance governed by Shariah law.